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Employee Ownership

Did you know that there are 300 Employee Owned businesses in the UK?

And it’s not just big businesses. Only 50 members of the Employee Ownership Association have over 350 employees.

One of the biggest challenges facing today’s companies is the need to engage, motivate and reward staff, while at the same time driving business performance.

For many organisations, the employee ownership model is an increasingly attractive option.

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So what is Employee Ownership?

It is a different way of structuring your company. A company can be treated as “employee-owned” where the whole, or a majority, or a significant part of it is owned by, or on behalf of, its employees.

Employee ownership can be direct (by means of shares held by employees individually) or indirect (by means of a trust arrangement) or a mix including elements of both.

What makes Employee Ownership right for your business?

The economic contribution of employee ownership in the UK is significant and is growing. Employee ownerships reported to deliver 4% of UK GDP annually. Employee owned businesses are thought to achieve higher productivity and greater levels of innovation and are more resilient to economic turbulence.

You might be considering employee ownership for one or more of the following reasons:

  • Reward for past service
  • Build a stronger company in the future
  • Maintain independence
  • Tax relief on selling to an employee ownership trust
  • Income tax-free bonuses for employees
  • Succession planning
  • Start-ups – setting the ethos of a business from the beginning
  • Threat of closure or insolvency

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